What is a Wholly-Owned Subsidiary? A subsidiary is a separate company that is owned by a larger (parent) company. If the parent firm owns between 51% to 99% of the company's stock, the company is considered a "subsidiary". What is a Wholly-Owned Subsidiary? A wholly owned subsidiary is a business entity whose equity (ownership interest) is entirely ...

What is an Exporter Identification Number? An exporter identification number (EIN) is required for shipping goods from United States to other foreign country. The EIN is issued by Internal Revenue Service, Department of Treasury. It is is filed through the Automated Export System. The EIN contains information on the sender and receiver of goods and ...

What is Labor Market Equilibrium?  The labor market is made up of workers and firms. The number of works in the market increases as wages rise. The number of employees rise (hires by firms) as the wage decreases.  Equilibrium in the labor market is when the supply of workers meets the demand for works by firms.  Requirements to Reach Labor Market Eq...

How does Opportunity Costs relate to International Trade? Both parties can benefit from specializing in their comparative advantages and trading. By using the opportunity costs it is possible to identify the range of possible trades that would benefit each country. Trade allows each country to take advantage of lower opportunity costs in the other c...

What is the Implied Warranty Of Habitability? In the mortgage or real estate industry, when a property (house) is considered habitable and up to standards of safety, it has an implied warranty of habitability. An implied warranty of habitability is a guarantee that a property put up for rent or lease if fit and safe for living throughout the period ...

What is a Kiddie Tax? The Kiddie Tax is a special tax law that was created in 1986, it was created to address investment tax and unearned income tax for people less than 17 years. In the United States, the kiddie tax rule is contained in the Internal Revenue Code 1. It is a tax rule applicable for individuals who are below 17 years. How Does a Kiddi...

What are Pre-money and Post-Money Cap Tables? Pre-money valuation references a company's value that does not include the most recent round of financing or external funding. Post-money valuation includes external funding or the most recent capitalization. A cap table specifies the ownership of a startup and what each individual owns. How are  Pre-Mon...

What is a Level of Trade?  A nation’s level  of trade may at first sound like much the same issue as the balance  of trade, but these two are actually quite separate. It is perfectly possible for a country to have a very high level of trade—measured by its exports of goods and services as a share of its GDP—while it also has a near-balance between e...

What is an Acceptable Use Policy (AUP)? Acceptable Use Policy (AUP) has diverse meanings depending on its context of usage. In this context, it is defined as a guide containing some set of rules that employees must obey while discharging their duties. It is regarded as a document that outlines the behaviors and code on conducts that an organization ...

What is the World Federation Of Stock Exchanges? The World Federation of Stock Exchanges is a trade association of regulated exchanges across the world. This association is made up of publicly regulated exchanges such as options, bonds and stocks that can be traded in the security market. This international trade group is commonly referred to as the...